Overbit.com, a leading Bitcoin derivatives trading platform, has conducted one of the most revealing surveys yet into crypto traders and the factors that influence their trading decisions. From a sample of more than 2,500 crypto traders from 90 countries, the leveraged trading platform was able to draw some interesting conclusions.
Overbit allows its users to trade cryptos, forex, and commodities using bitcoin without taking delivery of the assets. The company wanted to understand traders’ behavioral patterns and the motivational factors behind their trading-related decisions. To that end, from March 17 to March 31, 2020, it conducted a two-week online survey.
Trader background and preferences
The survey looked at three main categories including trader background, preferences, and behavioral patterns. When it comes to background, Overbit found that most traders fall within the age group of 35 to 44. 73% of traders have at least one year’s experience of trading in cryptos.
CEO and founder of Overbit Chieh Liu commented, “We found that higher education is not a prerequisite for success. Some 57% of novice traders have obtained their high school education only. This means that trading is still anyone’s game.”
Overbit also looked at several trader preferences including the key criteria for choosing an exchange, how many exchanges traders typically use, what devices they prefer to trade on, and the type of assets they trade.
The survey revealed that traders typically use an average of three exchanges for their trading needs. Security, deposit/withdraw speed, and server connection are among the top criteria when choosing an exchange.
“These criteria were very clear across all types of traders when it comes to choosing an exchange,” Liu said. “However, with pro-traders, whether an exchange is regulated or not is also high on the list, most likely as they are trading in large amounts either for themselves or on behalf of clients.”
While many novice and mid-tier traders favored mobile apps when trading, the desktops still reigned supreme as the first choice of device, likely due to the sophisticated trading tools and bots that can only run on big screens.
53% of crypto traders only engage in spot trading, while 47% also trade in crypto derivatives including futures, options, swaps, forwards, and contract for difference (CFD).
Trader behavioral patterns
The last section of the survey attempted to gauge when traders are most active and the assets they prefer to trade. Overbit found that novice and pro traders trade the least, while mid-tier and advanced are the most active.
Liu stated, “Our hypothesis was that pro-traders should be more active during the day, however, the data revealed the opposite. This could suggest that they prefer quality trades over quantity. We also found that, while there was an overwhelming preference for bitcoin across all groups at 83%, advanced and professional traders prefer to hold more of their assets in Tether.”
Overbit has recently added a new USDT deposits option for its users who exclusively trade in bitcoin in order to reduce their risk, particularly in times of high volatility.
The company believes that this will appeal to more professional and advanced traders who prefer to store their assets in USDT. It could also capture the interest of more spot traders who are drawn to its high-leverage platform and can use their BTC to speculate on traditional markets such as Forex and metals.
41% of crypto traders surveyed had also traded Forex. Of note, this number was higher amongst novice traders at 63%, perhaps indicating an interest in diversifying into crypto trading.
For more details on the survey, please visit:
For a summary on the survey in infographics, please visit:
Overbit is a Bitcoin margin trading platform, headquartered in Seychelles. Overbit offers a range of markets within crypto, forex, and commodities – with leverage of up to 100X for crypto and 500X for forex.
Margin trading carries a high level of risk to your capital and you should only trade with money you can afford to lose. Margin trading may not be suitable for all traders, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.
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